Morning Updates, Latest News, Corporate Action,22/12/2022.
Morning Update
FPIs pull out a record Rs 1.22 trn from Indian market so far this year
Foreign portfolio investors (FPIs) have pulled out Rs 1.22 trillion ($16.58 billion) from the Indian stock market so far this year and are on course to hit the highest-ever outflows in a calendar year. FPIs have turned net sellers in 2022 after being net buyers in the last three years. A combination of factors such as interest rate hikes by major central banks, weakness in the rupee, fears of global recession, and a spike in commodity prices have led to continuous pullout by overseas investors from domestic stocks. The rate hikes and monetary tightening by central banks, including the US Federal Reserve, led to risk aversion among investors, who were sceptical about whether policymakers would be able to tame inflation without triggering a recession. The depreciation of the rupee added to the nervousness of foreign investors. On a year-to-date basis, the rupee has declined 10.2 per cent against the US dollar. A fall in the rupee eats into FPIs’ returns.
UK’s trade panel proposes lifting bar on Indian stainless steel
In its initial findings, the UK’s Trade Remedies Authority (TRA) has proposed that a countervailing measure on imports of stainless steel bars and rods from India be revoked. Countervailing measures are put in place to offset imports being sold at unfair prices due to government subsidies in their country of origin. The TRA set out in its Statements of Essential Facts (SEF) on Tuesday that revoking the measure would be unlikely to cause injury to the UK industry. “As part of its transition review, the TRA found that while there have been subsidised imports of the goods while the measure has been in place, and this will likely continue, injury to UK industry would be unlikely to recur if the measure was no longer applied,” a UK government statement notes.
Indian economy likely to grow at over 7% in FY23, says Arvind Panagariya
The Indian economy is likely to grow at over 7 per cent in the current fiscal year, former Niti Aayog vice chairman Arvind Panagariya said on Wednesday, while observing that the growth rate should sustain next year too provided the forthcoming Budget does not have any negative surprises. Panagariya further said recessionary fears have been around for a while but so far neither the US nor the EU has gone into recession. “From the viewpoint of India, in terms of headwinds originating abroad, the worst is probably behind us,” he told PTI. Earlier this month, the RBI revised down its growth estimate for FY23 to 6.8 per cent from the earlier 7 per cent, while the World Bank revised upwards its GDP growth forecast to 6.9 per cent, saying the economy was showing higher resilience to global shocks.
Commodity play
Gold – Rs 54513/10gm, Silver – Rs 68015/kg, Brcrude – Rs 6136/barrel, Degumsyoil – Rs 1296/10kg, Copper – Rs 714/kg.
Corporate News
Torrent wins race to acquire RCap with Rs 8,640 crore offer to lenders.
Viacom18 bags 2024 Paris Olympics broadcasting rights for Rs 250 cr.
IndiGrid, G R Infraprojects partner for transmission bids worth Rs 5,000 cr.
SGX Nifty indicates a positive start to Indian markets trading at 18362 levels up by 0.62% or 112.5 points. Dow Jones also ended yesterday`s session in green up by 1.60% at close.
Sector in focus – Banks, IT, Pharma & Diagnostics and Fertilizers.
Bulk Deals and insider Trades
Bulk Deals
*Max Fin Serv Ltd : Max Ventures Investment Holdings Private Limited Sell 5885000 Shares @ Rs. 679.2
*Justdial Ltd. : Reliance Retail Ventures Limited Sell 1686119 Shares @ Rs. 600
*D-Link India Ltd : Ashish Kacholia Sell 213000 Shares @ Rs. 242.56
*Tirupati Forge Limited : Maven India Fund Buy 650000 Shares @ Rs. 23
Insider Trade
Acquisition*
*Director Acquisition 22247 shares of Ncl Industries Ltd.
*JSL OVERSEAS LIMITED Promoter Group Acquisition 16734984 shares of Jindal Stainless Ltd. on 16-Dec-22
*Promoter Acquisition 98200 shares of Ruchira Papers Ltd.
*Promoter Group Acquisition 300000 shares of Alembic Pharmaceuticals Ltd.
Disposal
*JSL OVERSEAS HOLDING LIMITED Promoter Group Disposal 16734984 shares of Jindal Stainless Ltd. on 16-Dec-22
*Chirayu Ramanbhai Amin HUF Promoter Group Disposal 300000 shares of Alembic Pharmaceuticals Ltd. on 19-Dec-22
*Promoter Group Disposal 114109 shares of Star Cement Ltd
Pledge
*SNEHA ENCLAVE PRIVATE LIMITED Promoter Group Pledge 1400000 shares of Emami Ltd.-$ on 19-Dec-22
Revoke
*MANAV INVESTMENT & TRADING COMPANY LIMITED Promoter Revoke 10000000 shares of Kesoram Industries Ltd. on 19-Dec-22
Stock in Action
Stock in Actions
Fortis Healthcare: Hospital business margin improved significantly during 2QFY23 on account of healthy improvement in operating metrics in all key hospitals. The occupancy rate was 70% in 2QFY23 vs 65% in 2QFY22 and 64% in 1QFY23. ARPOB during the quarter grew by 5% to Rs 1.97 cr vs Rs 1.87 cr in 2QFY22. It has been similar during 1QFY23. Management set the target to reach occupancy rate of 75% in FY23, but expect it will achieve early. Management is optimistic on the hospital business outlook. International Patient revenues grew 164% to Rs 109 Crs in Q2FY23 vs Q2FY22. The business contributed 8.4% to overall hospital business revenues versus 3.8% in Q2FY22 and 7.5% in Q1FY23. However, its diagnostic business SRL performance was not upto the mark during the quarter, though there has been uptick in non covid tests during the quarter. During Q2’FY23, SRL conducted approx. 9.97 Mn tests, a de-growth of 14% versus Q2’FY22 due to change in volume mix . Average realization per test (ARPT) grew by 8% in 1HFY23 over 1HFY22. Apart from occupancy, management is focusing on improving the specialty mix. Management is also working on improving the margins. Further, the surface of COVID cases in China and other countries and possible rise in cases in India could boost its testing volumes in quarters to come. Positive on Fortis Healthcare given the improving hospital business the rising Covid cases would be boon for both its hospital and diagnostic business.
Divis Lab: Divis Lab has posted a weak set of 2QFY23 numbers, chiefly because of the decline in contribution from custom synthesis and an erosion in margins. While the company is on track with its product pipeline in the API business and custom synthesis opportunities, meaningful contribution is expected only from FY24. The custom synthesis segment 43% of revenue dropped by 26% YoY due to reduced sales of Molnupiravir on a high base of COVID sales. On a QoQ basis, the decline was 33%. The capex for FY23 is estimated to be close to Rs 550 crore. This is significantly lower than the capex intensity seen in the last few years. The company has reached the validation stage for contrast media APIs with a few clients. Over the years, the company has also worked towards backward integration and green chemistry, which are helping achieve better yields. Further, rising COVID cases in China has pushed up the global API prices which is likely to improve the margins for Divis lab going ahead. Positive on Divis Lab as there has been huge traction in Domestic API sector given the China +1 policy and rising API prices globally due to resurface of COVID cases across the world.
Corporate Action
Sula Vineyards will make its debut on the bourses on December 22. The issue price has been fixed at Rs 357 per share.
Rhetan TMT has approved of issue of 11 (Eleven) Bonus Shares for every 4 (four) Equity Shares held by the Equity Shareholders of the Company as on ‘Record Date’. The Bonus Issue of Equity Shares is subject to the approval of the shareholders and other applicable statutory and regulatory approvals, as may be required.
Dividend
29-Dec-22
ADVANIHOTR: Interim Dividend – Rs. – 2.00
IPO
Elin Electronics: Open: 20-Dec-22; Close: 22-Dec-22
Radiant Cash Management Services: Open: 23-Dec-22; Close: 27-Dec-22
Buyback
Triveni Turbine: Ex-Date: 22-Dec-22
Triveni Engineering: Ex-Date: 22-Dec-22
Kama Holdings: Ex-Date: 22-Dec-22
eClerx Services: Ex-Date: 26-Dec-22
Jagran Prakashan: Ex-Date: 05-Jan-23
Orbit Exports: Open: 15-Dec-22; Close: 28-Dec-22
Tanla Platforms: Open: 20-Dec-22; Close: 02-Jan-23
Dhanuka Agritech: Open: 26-Dec-22; Close: 06-Jan-23
Bonus
Precision Wires India: Bonus Issue 1:2; Ex-Date: 22-Dec-22
Zim Laboratories: Bonus Issue 2:1; Ex-Date: 22-Dec-22
Globe Commercials: Bonus Issue 1:1; Ex-Date: 22-Dec-22
SecUR Credentials: Bonus Issue 3:1; Ex-Date: 26-Dec-22
Advait Infratech: Bonus Issue 1:1; Ex-Date: 28-Dec-22
KPI Green Energy: Bonus Issue 1:1; Ex-Date: 18-Jan-23
Stock Split
Filatex India: Stock Split From Rs. 2/- to Rs. 1/-; Ex-Date: 27-Dec-22
Supreme Petrochem: Stock Split From Rs. 4/- to Rs. 2/-; Ex-Date: 05-Jan-23
Rights Issue
Quint Digital Media: Ex-Date: 22-Dec-22
Hatsun Agro Products: Open: 19-Dec-22; Close: 09-Jan-23
Forthcoming Events
22nd December: Ramco Systems to consider Fund raising
24th December: Shriram Transport Finance Company to consider Dividend & Fund raising
26th December: Vaxtex Cotfab to consider Bonus & Fund raising; Central Bank of India, Share India Securities to consider Fund raising
27th December: ARC Finance to consider Right Issue; SEPC Limited to consider Fund raising
28th December: Alexander Stamps to consider Fund raising
02nd January: Inventure Growth & Securities to consider Fund raising
03rd January: Karnavati Finance to consider Stock Split
04th January: IRB Infrastructure Developers to consider Stock Split
05th January: K P Energy to consider Stock Split